Social psychology research strongly indicates that when people publicly espouse a particular point of view, they become much more likely to behave consistent with that point of view even if they did not previously hold that point of view.

P&G is a training company. It has been conducting on-the-job, formal classroom, and web based training for a long time based on the belief that its success is derived from its people. It has been paying much attention to attracting and recruiting the finest people in the world. P&G provides the various learning program like personal leadership, people and communication, project management and e-learning programs. P&G’s extensive supports for training its people means that it can encourage individuals to develop their competency through high-quality education. P&G’s pursuing the learning organization surely seems to focus on long-term success, not short-term profit. P&G has been clearly concentrated on building a “learning” organization rather than on acquiring the individual personality traits of visionary leadership. That is the outstanding example of clock building.

As the principle put it, organization is the ultimate invention of the clock-building leadership.

[2] 그 기업이 지속적으로 핵심 가치와 핵심목표에 부합하고 있다는 증거 한 가지를 들어 주십시오.

P&G’s core purpose is “provide branded products and services of superior quality and value that improve the lives of world’s consumers. And its core values are “leadership, ownership, integrity, passion for winning, trust” P&G invests $4 billion each year in research and development (R&D) to achieve its core purpose. This has led to a talent made up of 7500 Ph.D.s and researchers in 71 countries. It also holds more than 24,000 active patents worldwide. P&G was a 1995 recipient of the National Medal of Technology, the highest award the U.S. government gives for achievement in technology. The award recognized the company for creating, developing, and applying advanced technologies to consumer products that have helped improve the quality of life for billions of consumers worldwide. P&G remains one of only a few companies to have received this recognition. This means P&G continues to live by its core purpose because P&G has been making the most efforts to provide the product of the world-best quality based on the continuous product innovation. And this also means that P&G lives by its core values, passion for winning (compelling desire to improve and to win in the marketplace).

Yes, P&G has a clearly defined core ideology and do every effort to stick to it.

[3] 그 기업이 이익 보다 자신의 핵심 이념을 더 우선하고 있다는 증거 한 가지를 들어 주십시오.

In China, P&G partnered with the Beijing Health Bureau Labor Union. P&G donated 10,000 product packs to families of the front line health care workers, who were helping prevent the spread of SARS. The event touched the hearts of P&G employees, who volunteered to help prepare the product packs. Many P&G people worked through weekends and nights so that the product packs could reach the families before the local holiday, when the separation from the family member would be felt the most. This shows that P&G adheres to its core purpose to improve the lives of the world’s consumers by providing its products to people in need without profit, as well as sales of its product, not being oppressed by the “Tyranny of the OR”. The core ideology of P&G surely represents more than just a bunch of nice-sounding platitude. P&G shows the faithful adherence to its core ideology and That is the good example of “More than Profit”.

Yes, this anecdote shows clearly how P&G adhere to its core ideology.

[4] 그 기업이 핵심을 보존하며 발전을 촉진하기 위해 활용하는 메커니즘은 무엇입니까? 두 가지 들어 주십시오.

4-1.Preserve the Core

P&G has long-standing practices of carefully screening potential new hires, hiring young people for entry-level jobs, rigorously molding them into P&G ways of thought and behavior, spitting out the misfits, and making middle and top slots available only to loyal P&Gers who grew up inside the company. Indoctrination processes are both formal and informal. P&G inducts new employee into the company with training and orientation sessions and expects them to read its official biography “Eyes on Tomorrow”, which describes the company as “an integral part of the nation’s history” with “A spiritual inheritance” and “unchanging character”. New hires immediately find nearly all of their time occupied by working or socializing with other members of “the family”. P&G has a long historical track record of paternalistic and progressive employee pay and benefit programs, which bind its people closely to the company. (profit-sharing plan for workers, employee stock ownership plan, sickness-disability-retirement-life-insurance plan) P&G has used these programs not only as a means of rewarding employees, but also as mechanisms to influence behavior, gain commitment, and ensuring tightness of fit. That means P&G translates its core ideologies into tangible mechanisms aligned to send a consistent set of reinforcing signals. And it also indoctrinates people and impose tight of fit, and create a sense of belonging to something special. That is the exact example of “Cult-like Culture”, one mechanism among “Preserve the Core” principles.

You’ve proved the existence of indoctrination process and tight of fit mechanism, showing that you understand cult-like culture which is pivotal in preserving the core.

4-2.Stimulate Progress

P&G has the competing brand management structure that P&G brands compete directly with other P&G brands, almost if they were from different countries. P&G already had the best people, the best products, the best marketing muscle. So why not pit the best of P&G against the best of P&G? If the marketplace doesn’t provide enough competition, why not create a system of internal competition that makes it virtually impossible for any brand to rest on its laurels? That means P&G create internal competition in order to keep itself vibrant. P&G has a definite discomfort mechanism in place to combat the disease of complacency that inevitably begins to infect all successful organizations. This is the good example of “Good enough never is”, one mechanism among “Stimulate Progress”.

Yes, brand manager system is a perfect example of GENI translated in the form of “clock”.

CS(Cypress Semiconductor), in its early stage, focused on instituting a decentralized multidivisional structure based on its CEO, T.J. Rodgers’ wish that CS would be a big company with the speed, discipline, and energy of its early history. Rodgers proposed the idea of building a federation of small companies. The philosophy behind this approach was designed to create an energy level, sense of mission, and spirit of determination that Rodgers doubted could be achieved in a large company.That means CS aimed to be a self-contained market economy rather than a self-centered bureaucracy. Considering that its decentralization gave every division the authority and freedom to run it as if it were an independent business, this surely was the example CS practiced ‘clock building’ principle.

Yes, CS had adopted the decentralized organization approach before.

On the other hand, CS has the example of conflicting with ‘clock building’ principle. It changed its organizational structure in the face of negative growth in 1992. It has cut its product portfolio in half and removed incubator ventures and subsidiaries and sold some assets, laid off employees in the recognition that there was too much autonomy and not enough control. This change seemed to be focused on short-term profit rather than long-term success because it chose just the way to increase rapidly its operational efficiency without paying much attention to what would provide the long-term success. (Mechanism that could develop decentralized organization based on employees’ individual initiatives, for example, education program)

Yes, as you put it, Rodgers have turned the direction of CS to a wrong destination.

Rodgers exactly recognized that core values should not be created from the top. He and his senior team spent a year developing the set of values, beginning with a statement of a purpose. And, this process included brainstorming sessions that involved hundreds of employees and managers. Its purpose is “Invent, make, and sell the world’s best semiconductor products. Its core values are like follows, “Cypress is about winning, Cypress people are only the best, we do what’s right for Cypress, we make our numbers, we invest and make state-of-the-art products”. CS surely discovered and set up its own core ideology through sufficient efforts of CS people at all levels. Therefore, this can be considered as the example for CS to adhere to ‘core ideology’ principle from the viewpoint that its core ideology is based on what a company believes in and it makes sense for CS, may not for another. (Specially, its core value explicitly shows what CS stands for).

Yes, at least seemingly, CS has developed its own core ideology based on internal consensus.

But, its core ideology has the defect in some standpoint. CS made the mistake of simply describing its specific product line, ‘semiconductor’.It can’t be considered an effective purpose because a specific product lines might not even exist in 100 years. . Purpose should not be confused with specific goals or business strategies, but be like a guiding star on the horizon. CS’s purpose places a definite limit on its being developed into a visionary company. This is the example of CS conflicting with core ideology principle.

Great! Mckinsey should not restrict its domain to consulting. Based on its purpose to help its clients to be the best in their industry, Mckinsey can do something other than consulting in 100 years later. Like this CS may do something more than just producing semiconductors sometime.

The example that shows CS adheres to cult-like culture mechanism is its tightness of fit. Rodgers believed that hiring the talented people is the very important factor for CS’s success. As an important part of the recruiting process, all hiring managers must submit a “hiring book” that documents the entire process. It can select the talented people with right attitude through the severe and elaborate evaluation for the interviewees. During the interview process, an explicit attempt is made to probe for cultural mismatches by using a career, and aspirations. The questionnaire forces the applicant to be specific about hard-to-quantify issues. After all, CS acquires only the competitive and talented people that can fit its core values. Its core values are focused on winning in competition, talented people, excellent quality. This means CS vigorously screen out those who don’t fit with the ideology and create an almost cult-like environment around the core ideology. Good.

On the other hand, regrettably, CS shows the conflict with ‘home-grown management’ mechanism. It has focused only on attracting talented people from “raiding party”, not paid relatively little attention to training and developing its inner employees into managers, directors, chief executives. That means CS have been pursuing recruitment of talented people outside from the short-term perspective, have not made enough efforts to keep leadership continuity through developing current employees from long-term perspective. This enables big questions about CS like follows. “What will happen to CS when its great leader is gone?”

This time you offered two different examples, one for example of adherence and another for example of in conflict. This is a very good approach because CS may not be Gold but clearly be Silver.

3-2. Stimulate Progress

GR You mean CS? has a good mechanism to stimulate progress. Rodgers believed that growth masks waste, extravagance, and inefficiency. For this reason, CS demands ever-increasing productivity. To help achieve this, every quarter the company benchmarks itself on critical measures against its competitors. This exercise reinforces the shared mind-set about the importance of productivity growth. Unless there are significant improvements, the manager can’t request additional people. The logic underpinning this process is to run as lean as possible so that layoffs will not be required during a downturn. This means CS has discomfort mechanism in place to combat the disease of complacency that inevitably begins to infect all successful organizations. It is “Good enough never is” mechanism. I agree that Rodgers is a very demanding guy and he created some mechanisms to enforce discontent and endeavor to come up with it such as benchmarking.

On the other hand, CS didn’t have its own BHAGs. CS has only focused on continuous improvement cost efficiency and productivity of operations, the implementation of programs for reducing cycle times and inventory. It didn’t have any BHAGs that was so clear, compelling and fell well outside the comfort zone. It just concentrated on increasing short-term revenue through people/performance management, killer software rather than continually set bold new goals for itself long into the future. This is the conflict with BHAGs mechanism.

Yes. Just pursuing higher operational excellence cannot be a BHAGs.

Instructor feedback: Good job. You have proved you have a thorough and balanced view on CS.

GR’s core purpose is to nurture exceptional creativity and innovation by supporting people’s continuous and ambitious personal and professional growth in the pursuit of the highest quality products and serviceswhich advance global business standards and practices. It emphasizes focusing on total quality of the company. One of its BHAG for stimulating progress in terms of highest quality is “Defect-free product”. It is definitely consistent with GR’s core purpose and so clear, precise and focused that it requires little or no explanation. The BHAG encouraged GR to train its all plant operators in statistical process control and made them identify opportunities for improvement toward their visionary goal of defect-free product, and that enabled the highest batching accuracy in the industry. GR’s efforts to reduce process variability and increase product reliability resulted in satisfying its customers and lowering variable costs. Evidently, GR has been dedicated to approaching its core ideology through setting up its BHAG and making it best to achieve it.

Great! You proved that you understand and apply BHAGs concept. As you put it, “Defect-free product” can be an example of BHAGs in that it is consistent with GR’s core ideology and secure company-wide endeavor to achieve it resulting everlasting progress.

Another BHAG is “Win the Baldridge Award”. It is also obviously consistent with GR’s core purpose and so clear, precise and focused. Would you please explain why it is an example of BHAGs? What’s the relationship between winning M. Baldridge award and having a BHAG? GR’s first try to win the award in 1990 failed, but it gained the 138 valuable suggestions for improvement from the examiners. Because GR’s real goal is not just winning the award, but receiving as much feedback as possible from the Baldridge process, its first failure to win, after all, resulted in winning the award in 1992. The admirable point here is that GR prepared to prevent “we’ve arrived” syndrome by having follow-on BHAGs. GR’s CEO, Bruce Woolpert knew exactly that it was very important to instill drive for progress that resulted in a repeating pattern of BHAGs within the company and keep the company moving with a belief that vigorous movement in any direction is better than sitting still. Therefore, GR continued to pursue awards in which the application processes themselves provided additional insights into the business. In so doing, Woolpert and his team have brought their own philosophy of continual self-improvement to the Baldrige Program. That is the exact reverse of Ford’s case that it suffered from a complacent lethargy that can arise once a company has achieved one BHAG and does not replace it with another. GR’s case shows precisely how great companies should use their BHAG for continually stimulating progress of them. I am afraid that you have failed to explain the meaning of winning Malcolm Baldridge award.

Bruce believed that if GR gave its people more responsibility, they would respond.

That means GR give its people a lot of room to act and their enhanced involvement enables the elevation of its manager capability to focus on long-term planning. Therefore, GR got to have the high possibility of evolving into the organization that continually self-mutates from within, impelled forward by employees exercising its individual initiatives.Right. I am curious about something specific. GR understood exactly that encouraging individual initiatives would produce the raw material of evolutionary progress. “No more messiahs”(You should have explained it) is the good example of “try a lot and keep what works” mechanism. And of course, that is consistent with its core ideology. One of its core values is “people growth and development”.

Another example is its passion for benchmarking. GR has two kinds of benchmarking methodology for gathering ideas and observing the quality efforts of other companies. With one numerical benchmarking GR found that on-time delivery was critical from customer survey, they started exchanging statistics and information with a world-leader in on-time delivery. That helped the company focus on improving customer service that was one of its core values (dedication to customer service excellence). And GR also did pioneering benchmarking to explore for good business ideas in a fashion that was intended to shake up mental models and assumptions of the surrounding world. Although the companies they look at for benchmarking are simply interesting and not related in a direct way with Girl’s operation, they believe that if they get one good idea from a benchmarking visit, it’s worth it. Girl’s clinging tenaciously to new ideas is also based on its core value, continuous improvement as a way of life. Rather than protecting the work of past, GR people really encourage and support both incremental and sweeping change and recognize that risk-taking and honest mistakes are unavoidable parts of doing this. That’s the mechanism, “try a lot of stuff and keep what works”.

I believe that you has a good understanding on the concept of “try a lot and keep what works”. But I am afraid that you have failed to offer the right examples. For example, benchmarking is a mechanism for GENI rather than “try a lot” in that it cause intentional dissatisfaction with its status quo prompting pursuing something more and better. And in the case of “no more messiahs”, you should have explained what is it and why, do you think, it is related with the “try a lot” mechanism.

GR has the discipline of self-improvement that stands out as one of the clear differences between the visionary and comparison companies. That’s the IPDP(Individual Professional Development Plan). It is composed of developmental objective, developmental experiences to help achieve a developmental objective and measures to show that the objectives had been met. Its purpose is future development, not used to determine an individual’s past job performance. It is focused on managers’ role as leaders, teachers and coaches. And it can develop a great deal of perspective on how people should be developing and alternative ways to motivate new learning experiences for people. It is forward-looking, encourages people growth, and increases accountability. GR is creating development experts through creating mechanisms of discontent that brings about change and improvement from within, yet is consistent with its core valueThis is just about GENI. (people growth and development, continuous improvement as a way of life).

As you said, IPDP can be a good example of GENI in that it is in line with GR’s core value and force future-oriented changes.

Anther example show “good enough never is” mechanism is that GR’s long-term investment for training people. Bruce created “GraniterockUniversity”, which grew to include over 50 different courses, seminars and lectures every year on various topics. All GR people were encouraged to attend, as well as their spouses fro many courses. In 1991 GR invested on average $1,700 per employee, compared with an average of $529 per employee in the mining industry and $127 in the construction company. That corresponds to 1% of gross sales. This belief that GR people are a large part of its competitive edge made GR consistently demonstrate a penny-foolish, pound-wise attention on people training that has incite continuous improvement into the future. Instead of waiting for the world to impose the need for change, GR's likely to be and earlier adopter than the competitors.Good. Advanced training system can be used as GENI mechanism.

GR has a unique mechanism for stimulating progress. That is open door policy and suggestion card programs. GR believed that communication flow within the organization was very important as well as knowledge flow within it. GR broke communication barriers within the company and announced a formal, 24-hour a day open door policy, whereby anyone could carry a concern or question directly to any level of management. And GR formalized comment/suggestion card program and provided other vehicles to people who were not comfortable in a direct-face-to-face discussion. In GR, people can talk directly to their supervisors and get issues addressed immediately, and this work for the majority of issues. Open door policy was the great example of clock-building that made GR people build good rapport with each other regardless of levels. That means GR has the high possibility of stimulating progress through keeping any problems, issues under control and keeping movements moving based on enough communication between employees and their proactive involvement. This is another mechanism that GR has been using for stimulating progress.

You got it again. GR has a great communication system like open-door policy and suggestion card program. As you put it these are a good examples of clock building principle rather than an example of 3 mechanisms of stimulating progress. Communication system can be used both to preserve the core and stimulate progress.

Instructor Feedback: In this task, you’ve derailed for a while but returned to normal quickly. So I think you are somewhere between NI and M.

Assessment: If you want, you can keep M grade. But I recommend you to try again for an E grade.

The first example that shows SW’s cult-like culture is its tightness of fit. Good start. SW is extraordinarily selective in recruiting. It recruits primarily for attitude. To ensure fit, there is an emphasis on peer recruiting and teamwork is critical. Applicants must also pass an application, a phone screening interview, a group interview, and three additional interviews. Why the entire hiring process focuses on positive attitude and teamwork is that SW believes most skills can be learned and doesn’t screen heavily for these except for certain specialist jobs. This means SW vigorously screen out those who don’t fit with the ideology and create an almost cult-like environment around the core ideology. (Its core value is work should be fun, work is important, people are important. Its core purpose is the dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit.)

Yes. SWA is adopting many selective hiring processes to secure a tight cultural fit that plays a pivotal role in developing and keeping a cult-like culture. You pointed and explained this point very well with right example.

The second example is that SW pays particular attention to train its employees. At SW’s university for people, 25,000 people are trained each year. The emphasis of the training is on doing things better and understanding other people’s job, delivering outstanding customer service. This training program reinforces the frame of mind SW and rigorously molds SW employees into SW ways of thought and behavior.

And the third example is that SW creates a sense of belonging to something special through practical, concrete items. It emphasizes having fun at work. Fun is a core value and part of SW style and spirit. This fun atmosphere builds a strong sense of community and pervades the entire company. Serious attention is paid to parties and celebration that occurs continually. At that time, the Love Field corporate headquarters in Dallas is filled with banners and with pictures of SW employees at parties, awards, trips, and celebrations. This can actually enhance the company’s ability to preserve the core and stimulate the progress, precisely because it creates that sense of being part of an elite organization that can accomplish just about anything.

Again, you got it! Elitism is another important characteristic of a visionary company with a cult-like culture. As you put it SWA is emphasizing “fun at work” and trying to make everyone in SWA feel fun through parties, awards, and celebrations. And making its employees fun and happy, SWA has been created a strong sense of belonging to an elite company among them.

transition from one generation to the next. The first example is the chief executive succession planning. SW’s CEO, Herb Kelleher publicly commented that he chose James F. Parker as a new CEO, and Colleen C. Barrett as president and COO. Both Mr. Parker and Ms. Barrett are typical SW persons who have played important roles as top managements in the company for a long time. Mr. Kelleher has been carefully preparing Mr. Parker to assume the role of chief executive through making him participate in the important decision-making. Also, Ms. Barrett has played leading roles of embodying the company’s core ideology by weaving the culture across regional differences and indoctrinating new workers into SW’s ways. Mr. Parker and Ms. Barrett are surely expected to preserve the core ideology without leadership discontinuity. And SW is preparing for the next leadership in advance from appointing three executive vice presidents who are candidates to succeed Mr. Parker down the road. This is a good example of home-grown management mechanisms.

Yes, as you said the CEO succession and preparing a CEO candidate pool are stark examples of a home-grown management mechanism.

The second example is the manager’s training program. Managers take the three-and-a-half day course on the leadership, pricing, revenue management, and how the business works. And frontline leadership gets the experimental training about particular needs through two-day course each year. This means SW has the high possibility of having talent stacked like cordwood from developing managers through internal education program and therefore preserving manager-level leadership continuity.

Also this can be a good example of a home-grown management in that through training program for manager-level employees SWA is preparing candidates for future CEOs. But I want to point one thing here. You did not clearly show that SWA is linking those training programs to selecting future CEO pool.

The third example is that SW is providing information so that people can be involved. SW’s employees act like owners of the airline because they are encouraged to take responsibility and make decisions. This enables employees at low level to have individual initiatives and grow to be a good manager in the future. In brief, SW has good mechanism to grow caliber managers, caliber directors, caliber CEOs. In this case, you offered a great explanation rather than a good example. Many other learners offered this example, but they have failed to interpret it into this meaning.

The example to show that SW is relatively closer to ‘more than profit’ mechanism than its competitors is SW’s simple fare strategy. Unlike other airlines that rely heavily on computers and artificial intelligence programs to maximize flight revenue, SW typically offers only two fares on a route. SW doesn’t sell interline connection with other carriers and therefore only 55% percent of SW’s seats are booked by travel agents, compared with 90 percent of tickets for major airlines. Also, SW has its own frequent flyer club based on simple model. This strategy made SW a very profitable airline providing the great value to its customers. That means SW is very likely to do more than just make a profit. Actually SW’s simple fare strategy is closer to its core purpose than pursuing profit. Its core purpose is the dedication to the highest quality of customer service.

Good. More than profits means a visionary company pursues core ideology than profits and paradoxically it earn more money by emphasizing core ideology. You have proved concisely that SWA’s fare strategy is based on its core purpose rather than profit orientation.

‘warrior spirit’. SW has been facing severe competitors’ hindrance since its foundation and used to come to a crisis. This environment made SW people unite closely and fight their competitors feeling that they were crusaders freeing Jerusalem from the Saracens. This aggressive, underdog spirit pervaded the company and became an integral part of the company’s culture and a key to its success. SW people learned to endure and survive from battles with their competitors. This is SW’s own unique mechanism to preserver its core.

Warrior spirit is unique in SWA culture. And this spirit made SWA guys to defend SWA’s status and core ideology but it does not subject to those 3 mechanisms, cult-like culture, home-grown management, and more than profits.

Instructor feedback: You have chosen proper examples and offered good reason why they are proper. Keep this momentum.

Core ideology is an organization’s self-identity that defines its enduring character.It remains consistent through time and transcends product/market life cycles, technological break-throughs, management fads, and individual leaders. It is composed of core purposes and core values. AES definitely has its own core ideology. Roger Sant and Dennis Bakke, founders of AES, discovered its authentic core ideology, that could be passionately-held on a gut level for a long time, based on their moral conviction. AES’s core purpose is “supplying electricity to customers worldwide in a socially responsible way”. It can be considered as well-defined one because it clearly provides deeper reasons for the organization’s existence beyond just making money. AES’s strong sense of responsibility that explicitly described in its core purpose made it possible for AES to grow into one of visionary companies beyond typical profit-pursuing companies. AES’s core values are integrity, fairness, social responsibility, and fun. They can be regarded as a good model of core values because they succeed in defining the enduring character of the organization independent of the current environment, competitive requirements, or management fads. Also AES’s core values deserve to become the organization’s essential and enduring tenets and have functioned as intrinsic guiding principles for people inside the organization. That means all the elements of the company have worked together in concert within the context of the company’s core ideology, in terms of alignment.

One of those examples showing AES’s aligning itself with the core ideology can be seen in the company’s adding “shared value” as one of four measures used to assess the company’s performance and progress.

You’ve successfully defined the concepts, offered good examples, and explained why they are proper for examples of the concepts. As you put it AES has its own well defined set of values and purpose and good examples proving they are adhere to their core ideology.

[2] ‘핵심이념’(Core Ideology)의 두 가지 예를 들고, 그 것이 왜 핵심이념 원칙에 해당하는지 설명하십시오.

Clock building is a process of instituting concrete organizational mechanisms to stimulate change and improvement. This means seeing the ultimate creation as the company, not the execution of a specific idea or capitalizing on a timely market opportunity, and therefore moving toward becoming an enduring great institution regardless of what happens to its leader, who focuses his or her energies on building the organization. AES has concentrated primarily on building a decentralized organization. All functions are represented in every division and each division has responsibility for strategy and business development. This kind of decentralization gave every division the authority and freedom to run it as if it were an independent business. That makes its organization evolve and change on its own and AES people at all levels have enough room for individual initiatives. There is high possibility that AES will prosper long because AES people don’t depend on any charismatic leader for guidance in their work, but have the huge opportunity to grow and learn by failures and mistakes based on widespread diffusion of both knowledge and responsibility. That is the outstanding example of clock building. Another example of clock building is a tuition reimbursement program. It can encourage individuals to develop their competency through effective education by tiered tuition reimbursement structure. That’s the good mechanism that enables employees continue personal development voluntarily without any compulsive directions.

Yours is a perfect answer except that you offered 2 examples of different levels. Adopting a decentralized organization and running a tuition reimbursement program are not same in their levels. The former is in policy level and the latter is in program level. You would have mentioned AES’s education policy to make even the 2 examples level.

Preserving the core means making specific efforts to ensure that its core remains intact without confusing core ideology with culture, strategy, tactics, operations, policies, or other non-core practices. AES didn’t just philosophize about its core ideology. It translated its core ideology into tangible practices. A good one of those examples is that AES plant strives to be a “good neighbor” to people living nearby. All the plants of AES are equipped with the highest cleanliness and immaculateness and provide neighbor-friendly impression. That means AES did it best to preserve the core purpose and core values with strong social responsibility. Another example also can be seen in cultural elements. The Thames plant has so many social events that the plant people tend to find many time occupied by socializing with other members of the plant family and enjoy each other. Creating a delightful workplace environment with AES folks means one of AES’s core values, fun.

Stimulating progress means impelling change and forward movement in all that is not a part of the core through deep, inner, primal drive for progress that couldn’t be satisfied forever. And it should co-exist with preserving the core ideology within the organization like the yin and yang of Chinese dualistic philosophy.

One of the example that AES has been stimulating progress is it’s corporate culture and organizing principle, “honeycomb” that is characterized by no formal job descriptions. This means AES guides its employees to do new things and proceed from new job scopes and new approaches for them. This effort is one of the most important factors that can give AES the huge opportunity to keep up continuous drive for progress. Another example is the company tends to use a lot of task forces and informal communication to make decisions. This means AES values employees’ freedom to make their own decisions and gave to many opportunity to

grow in terms of competency and contribute to the company growth.

This time you got it!

Instructor Feedback: Mr. Choi, you have proven that you understand every concept clearly and apply it properly. I hope you can keep this pace till finish line.